Investigating the effects of green taxes on the quality of the environment and government expenses and the economic well-being of households using the Nordhaus model.

Document Type : Research Paper

Authors

• masoumeh soltani nejhad ¹
• Abdolmajid jalaee ²
• Mohsen Zayandehroody ³

¹ kerman azad university ,

² Associate Professor, Faculty of Management and Economics martyr Bahonar University

³ Department of Economics, Islamic Azad University of Kerman, Kerman, Iran

10.30495/jae.2024.29497.2306

Abstract

The purpose of this article is to investigate the effects of green taxes on the quality of the environment and government expenses and the economic well-being of households using the Nord Haus model. In this research, scenarios of 0.5, 1, 1.5 and 2 percent green tax on the economic well-being of households were measured. The results showed that while adopting 0.5% green tax, the level of economic welfare increases. But in the next stage, it reaches a stable trend. But in the situation of 0.1%, the level of economic well-being increases in the first stage, and then it takes an average state, and then it decreases a certain amount. It can be said that economic prosperity has increased in the short term but decreases in the long term.But the situation of 1.5% and 2% green tax scenarios is different. Economic well-being increases in the first stage of these two scenarios, but in the long term, its amount decreases.

Keywords

• Green tax
• government expenditure . economic welfare
• Nordhaus model

---